# How are top-grossing apps testing price increases?

Author: Ali Abouelatta
Source date: 2024-03-01
Tags: monetization, pricing, subscription, experimentation
HTML: https://design.lazyweb.com/blog/pricing-experiments
Markdown: https://design.lazyweb.com/blog/pricing-experiments.md

Short answer: Ali's top-100 grossing app review found that about 20% tested a price increase over six months, with an average increase of about 27%. Around a third of those tests pushed harder toward annual plans, while about 10% of observed pricing experiments were not successful.

> Ali's top-100 grossing app review found that about 20% tested a price increase over six months, with an average increase of about 27%.

## Visuals

### Primary visual: Pricing experiments summary graphic from First 1000.

Image URL: https://design.lazyweb.com/research-assets/pricing-experiments/01-pricing-summary.webp
Original image URL: https://substack-post-media.s3.amazonaws.com/public/images/9ee20946-d5e8-49cf-bb4a-9d2565369700_1200x628.png
Image description: A summary graphic introduces the pricing experiment review across top-grossing subscription apps.

### Visual: Subscription pricing comparison screenshot from the pricing experiments issue.

Image URL: https://design.lazyweb.com/research-assets/pricing-experiments/02-pricing-test-one.webp
Original image URL: https://substack-post-media.s3.amazonaws.com/public/images/759fb071-541a-4ddf-9b6f-3d5226f7526e_2912x2844.png
Image description: A subscription pricing screenshot compares plan options and shows how apps structure price tests.

### Visual: Second subscription pricing comparison screenshot from the pricing experiments issue.

Image URL: https://design.lazyweb.com/research-assets/pricing-experiments/03-pricing-test-two.webp
Original image URL: https://substack-post-media.s3.amazonaws.com/public/images/43883f04-6818-4258-8b0b-cead8f149f14_2912x2844.png
Image description: Another pricing screenshot shows how monthly and annual prices can shift relative to one another.

### Visual: Third subscription pricing comparison screenshot from the pricing experiments issue.

Image URL: https://design.lazyweb.com/research-assets/pricing-experiments/04-pricing-test-three.webp
Original image URL: https://substack-post-media.s3.amazonaws.com/public/images/b621c4b7-4c6a-4894-8d37-da108819c04f_2912x2844.png
Image description: A third pricing screenshot documents another plan-price configuration from the top-grossing app review.

## Evidence

The issue is data-report oriented: price increases are common, but the shape of the increase matters as much as the absolute price.

## The numbers

| Stat | Computed from |
| --- | --- |
| ~20% | Share of top-100 grossing apps that tested a price increase over six months |
| ~27% | Average size of the price increase in the reviewed set |
| ~1/3 | Share of those price tests that pushed harder toward annual plans |
| ~10% | Share of observed pricing experiments that were not successful |

## What changed

- Some apps raised monthly and annual prices together.
- Some apps raised monthly pricing more aggressively to make annual plans more attractive.
- Lifetime and weekly plans appeared more robust to price increases in the reviewed set.

## Why it matters

- A price increase is also a packaging experiment.
- The annual-plan nudge can be built through relative pricing, not only discount copy.

## Sources

- [1] Lazyweb Research: top-100 app pricing experiments. Reports about 20% of top-100 grossing apps tested price increases, the average increase was about 27%, about a third pushed annual plans, and about 10% were unsuccessful. [Source](https://read.first1000.co/p/pricing-experiments)

## Methodology

Product-experiment write-up by Ali Abouelatta, dated on March 1, 2024. Source links are listed below.

- [First 1000 issue](https://read.first1000.co/p/pricing-experiments)

## Related research

- [How did Uber Eats test a benefit list against a benefit grid in its subscription paywall?](https://design.lazyweb.com/blog/uber-eats-benefit-list-paywall)
- [How should apps show limited-time subscription discounts in paywalls?](https://design.lazyweb.com/blog/snapchat-special-offer-badge)
- [Should mobile apps offer a cheaper web checkout CTA?](https://design.lazyweb.com/blog/soundcloud-web-checkout-discount)